NPRC responded to a NACHA request for comment on an evolving practice: Some financial institutions are crediting employees with payroll direct deposits one to three days earlier than the intended settlement date. This is obviously helpful for the employees, but it can cause confusion and problems. Some employees may be confused if co-workers are paid earlier than they are. Workers who receive their funds early may become accustomed to this timing, and future paychecks could be delayed or credited on different days (up to the intended check date). Early release also limits the ability of businesses and payroll firms to make corrections to payrolls prior to the check date. NPRC supports meaningful enhancements to payroll administration to improve workers’ financial well-being, but suggested that receiving banks assume responsibility for corrections that are prevented due to early release.
NPRC Comments on Early ACH Release
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